- As toll crosses 100, Trump puts Hurricane Helene at election center stage
- US Fed Chair sees 'further disinflation' in economy
- Epic Games sues Google and Samsung over app store
- Officials see no shortages from likely US port strike
- UK families of Gaza hostages warn Lebanon attack 'takes focus away'
- Shares in Stellantis, Aston Martin skid on profit warnings
- Dali prints found in London garage sold at auction
- ECB chief backs bank mergers amid UniCredit, Commerzbank talk
- China stocks soar on stimulus, but US and Europe retreat
- 100 dead in storm Helene damage, flooding across US southeast
- China stocks soar on stimulus, Europe slides on automaker woes
- German antitrust watchdog steps up monitoring of Microsoft
- Nepal's urban poor count cost of 'nightmare' floods
- E.Guinea, Gabon clash at ICJ over oil-rich islands
- New blow for UK's Starmer as growth data disappoints
- China's top banks to tweak mortgage rates to boost housing market
- Muslim women break taboos navigating east London's waterways
- Nepal dam-building spree powers electric vehicle boom
- More than 60 dead from storm Helene as rescue, cleanup efforts grow
- Dozens missing, 9 dead in migrant boat wreck off Spanish Canaries
- Death toll from Hurricane John hits eight in Mexico
- Storm Helene's toll rises as rescue and cleanup efforts gain pace
- SpaceX launches mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding as cleanup begins
- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
- Argentina judge orders dictionary to delete pejorative definition of 'Jewish'
- Global stocks rise on rate hopes, Beijing stimulus
- S.African woman turns 118, among the oldest in the world
- UK clears $4 bn AI partnership between Amazon, Anthropic
- Barca fans barred from Champions League away game over racist banner
- Chinese stocks extend surge, Europe higher on Beijing stimulus
- Pope says Church must 'seek forgiveness' for child sexual abuse
- China caps week of 'bazooka' stimulus for ailing economy with rate cut
- Cuts, cash, credit: China bids to jumpstart flagging economy
- France's debt weighs heavier ahead of budget debate
- Iran treads carefully, backing Hezbollah while avoiding war
- Return to sender: waste stranded at sea stirs toxic dispute
- 'Broken' news industry faces uncertain future
- On remote Greek island, migratory birds offer climate clues
- Taken from mother by nuns, victim seeks answers as pope visits Belgium
- China cuts amount banks hold in reserve to boost lending
RBGPF | 7.18% | 64.75 | $ | |
BCC | -0.36% | 140.98 | $ | |
CMSC | -0.21% | 24.72 | $ | |
RYCEF | 0.14% | 7.05 | $ | |
NGG | -0.09% | 69.67 | $ | |
SCS | 2.52% | 13.49 | $ | |
CMSD | -1.21% | 24.78 | $ | |
VOD | -0.7% | 10.02 | $ | |
RIO | -0.08% | 71.17 | $ | |
JRI | 0.66% | 13.67 | $ | |
RELX | -0.21% | 47.46 | $ | |
AZN | 0.37% | 77.91 | $ | |
BTI | -0.71% | 36.58 | $ | |
GSK | 0.42% | 40.88 | $ | |
BCE | -1.12% | 34.8 | $ | |
BP | -0.1% | 31.39 | $ |
Volkswagen sees impact of Ukraine war despite profit bounce
German auto giant Volkswagen said Thursday its first quarter operating profit increased significantly in 2022, while warning that the "first effects" of the war in Ukraine were beginning to be felt.
The group's operating profit, a measure of profitability closely watched by investors, rose to 8.5 billion euros ($9.3 billion) over the first three months of the year from 4.8 billion euros in the same period last year, according to preliminary figures.
The boost was down to strong "operating performance" and a positive effect of 3.5 billion euros thanks to hedges against the changing price of raw materials.
The turbulence on commodities markets could be traced back to the "ongoing war in Ukraine", which has pushed up prices, Volkswagen said in a statement.
Supply chain impacts could also be seen, with deliveries from suppliers in Ukraine being limited.
The lack of critical car parts has already forced Volkswagen, along with other German carmakers, to curtail production at some plants, while exports to Russia have been halted.
The course of the war and the impact on Volkswagen "cannot be predicted with sufficient certainty" but risked having a "negative impact" on the Wolfsburg-based group.
Volkswagen also said it delivered some 500,000 fewer cars in the first quarter of 2022 than in the previous year, a 22-percent drop.
The continued impact of the coronavirus pandemic, which has recently led to widespread lockdowns in China, a key market, also loomed over the auto manufacturer's future performance.
As did the possibility of further disruption to supply chains "especially for semiconductors", a key component in both conventional and electric vehicles.
The two effects already conspired to make business difficult for Volkswagen in 2021. Despite net profits rising by 75 percent to 15.4 billion euros, the 12-brand group delivered 600,000 fewer units last year, as lockdowns and shortages caused interruptions in production.
D.Goldberg--CPN